In This Article:
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Net Sales: $884 million, an increase of 6% year-over-year.
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Adjusted Earnings Per Share (EPS): $1.69, up from $1.62.
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Net Cash Provided by Operating Activities: $112 million for the first half of 2025, down from $144 million.
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Free Cash Flow: $60 million for the first half of 2025, compared to $88 million.
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Debt Leverage: 1.5x EBITDA as of March 31, 2025.
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Capital Returned to Stockholders: $111 million in the first half of 2025, including $79 million in share repurchases and $31 million in dividends.
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Aerospace Segment Sales: $562 million, an increase of 13%.
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Defense OEM Sales: Up 52% in the quarter.
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Commercial Aftermarket Sales: Up 23% in the quarter.
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Commercial OEM Sales: Down 9% due to production ramp issues.
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Aerospace Segment Earnings: $125 million, with margins expanding 240 basis points to 22.2%.
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Industrial Segment Sales: $322 million, a decrease of 5%.
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China On-Highway Sales: $20 million, a $45 million decrease from the prior year.
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Core Industrial Sales: Up 11%, with oil and gas up 21%, transportation up 13%, and power generation up 40%.
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Industrial Segment Earnings: $46 million, with margins at 14.3%.
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2025 Guidance: Consolidated sales expected between $3.375 billion and $3.5 billion; adjusted EPS between $5.85 and $6.25.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Woodward Inc (NASDAQ:WWD) reported a 6% year-over-year increase in net sales for the second quarter of fiscal year 2025.
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Adjusted earnings per share rose by 4%, indicating steady growth despite challenges in the China on-highway market.
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The aerospace segment achieved record sales, with a 13% increase driven by strong defense OEM sales and commercial aftermarket growth.
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The company successfully delivered the first production Micronet XP advanced gas turbine control system for the US Navy, marking a significant milestone.
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Woodward Inc (NASDAQ:WWD) raised the low end of its sales and adjusted EPS guidance for fiscal year 2025, reflecting strong year-to-date performance.
Negative Points
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Industrial segment sales decreased by 5%, primarily due to a significant decline in China on-highway sales.
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Free cash flow for the first half of 2025 was $60 million, down from $88 million in the previous year, mainly due to increased working capital.
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Commercial OEM sales were down 9% due to a measured production ramp following the Boeing work stoppage.
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The company faces potential risks from tariffs and trade tensions, which could impact operations and sales.
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Defense aftermarket sales decreased by 8%, and the company anticipates a slower growth rate in commercial services in the second half of the year.